The Motley Fool Discussion Boards

Previous Page

Motley Fool Global Gains / GGM: Global Gains Philosophy

URL:  https://boards.fool.com/thanks-for-posting-deej-interesting-stuff-i-26879413.aspx

Subject:  Re: El-Erian: Buy more foreign stocks Date:  8/6/2008  3:04 PM
Author:  Hukphinn Number:  90 of 5166
Thanks for posting, Deej. Interesting stuff. I might have to check out his book (despite the fact that Greenspan rec'd it!).

Coincidentally, I've been working on an asset allocation strategy for my 401(k) recently (probably goes without saying that it's a fund portfolio). As of today (could change tomorrow!), I've come up with the following broad allocation:

52% US Stocks		
	26% Large cap	
	26% Small and Mid-cap	

30% International Stocks		
	15% Developed Markets	
		10% Large cap
		5% Small cap
	15% Emerging and Frontier Markets	
		12% Emerging Mkts
		3% Frontier Mkts

18% Real Estate and Commodities		
	10% REITS and real estate operating companies (REOCs)	
	8% Broad-based commodities (via an ETF (DBC) and an ETN (DJP))

My working assumption is that the portfolios of US domestic stock funds include roughly 20-25% foreign stocks. If this assumption is true, that means roughly 40% of my allocation is US and 40% is international.

FWIW, I thought a 15% allocation to emerging markets was aggressive. I don't know many folks who would ratchet up their EM exposure to 33%.

Huk
Copyright 1996-2022 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us